Kynikos Alumni Start Hedge Fund Betting on Declining Stocks

Two former analysts of Jim Chanos’s Kynikos Associates Ltd., which rose to fame shorting Enron Corp., started a new London-based hedge fund earlier this month to bet on falling stocks globally.

The Arhammar Short Alpha Fund Ltd., which started on Oct. 10 and is backed by the second-largest Baltic bank SEB AB (SEBA), will invest in 30 to 50 stocks which are expected to underperform the market, co-managers Mike Monnelly and David Bonnier said, declining to specify the amount of capital the fund has raised.